On Earnings Associated with New Products,it Is Critical That

question 42

Multiple Choice

 On earnings associated with new products,it is critical that: 

• A) management has a pressure of steady improvement in earnings per share.
• B) firms do not become solely preoccupied with a short-term focus.
• C) the emphasis should be on short-term profits.
• D) the firm realize that profitability will not be supported by the stock market in terms of higher share prices over the long term.

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Definitions:

Value Proposition

A business or marketing statement that summarizes why a consumer should buy a product or use a service.

Inventory Costs

The total cost associated with holding and managing inventory, including warehousing, depreciation, insurance, and potential obsolescence.

Single Sourcing

A procurement strategy where a company relies on a single supplier for a particular component or product.

Assurance of Supply

The confidence in a supplier's ability to provide consistent and continuous goods or services, meeting the buyer’s requirements.